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Ericsson Completes Sale of Iconectiv to Koch Equity, Generates $1B Cash Benefit
ByAinvest
Saturday, Aug 23, 2025 8:06 pm ET1min read
Ericsson completes the sale of iconectiv to Koch Equity Development, generating a cash benefit of SEK 9.9 billion (USD 1.0 billion). The transaction results in a one-off EBIT benefit of approximately SEK 7.6 billion (USD 0.8 billion) in Q3 2025. Iconectiv, a provider of number portability solutions, was part of Ericsson's Enterprise segment and contributed around SEK 1.0 billion (USD 0.1 billion) to Ericsson's net income for the year 2024. The sale is part of Ericsson's strategy to divest non-core assets and focus on its telecommunications infrastructure business.
Ericsson (NASDAQ: ERIC) has completed the sale of its subsidiary iconectiv to Koch Equity Development LLC. The transaction, announced on August 22, 2025, is expected to generate a significant cash benefit for Ericsson.The sale is anticipated to yield a cash benefit of approximately SEK 9.9 billion (USD 1.0 billion) for Ericsson after accounting for taxes, transaction expenses, and other liabilities. Additionally, the transaction will result in a one-off EBIT benefit of approximately SEK 7.6 billion (USD 0.8 billion) in the company's Q3 2025 financial results [1].
Iconectiv, a leading provider of number portability solutions and core network and operations management services, was part of Ericsson's Enterprise segment. It contributed around SEK 1.0 billion (USD 0.1 billion) to Ericsson's net income for the year 2024 [2].
The sale of iconectiv is part of Ericsson's strategic initiative to divest non-core assets and focus on its core telecommunications infrastructure business. This move aligns with Ericsson's broader goal of enhancing shareholder value and optimizing its portfolio.
Ericsson has emphasized that the sale of iconectiv is subject to certain risks and uncertainties, including those outlined in its latest interim reports and annual report for 2024. The company has cautioned investors that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements [3].
References:
[1] https://www.prnewswire.com/news-releases/ericsson-completes-sale-of-iconectiv-302536805.html
[2] https://news.futunn.com/en/post/61017437/ericsson-completes-sale-of-iconectiv
[3] https://www.morningstar.com/news/pr-newswire/20250822io57312/ericsson-completes-sale-of-iconectiv
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